American Airlines' USD436m 1Q2011 loss smaller than expected

American Airlines parent AMR Corp reported smaller-than-expected quarterly net loss of USD436 million, helped by cost cuts and fare increases, but soaring fuel prices has prompted the carrier to curb capacity this year. Shares in the carrier were down 1.1%, on a mixed day for US airline stocks. United Continental Holdings, JetBlue and Southwest are set to report their 1Q2011 earnings on 21-Apr-2011.

American plans to trim 4Q2011 system capacity by 1% by scaling back plans to add new services. The carrier plans to retire 10% of its MD-80 fleet and replace them with more fuel efficient B737 jets.

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